Let me know what you find out with the PS4 on movies and if anyone has an opinion on my question above regarding processors for movies. Even if I use the PS4 for Blu Ray, most of my movies are off of Direct TV, so I still need a stand alone processor

As of now, the PS4 doesn't process virtual surround for headphones on it's own.
I believe I mentioned the advantages of each of the processors I've used, either in reply to you already or in the guide, but if hiss is your main worry then you probably would favor the Recon3D USB, maybe the Turtle Beach DSS.

Keep in mind you have to set the console to bitstream Dolby, as the SU-DAC you have is the only non-AVR unit I've heard of that can decode DTS, and also keep in mind that the 32 Ohm and sensitive Grados are a little more prone to picking up hiss and provide less dampening than a 62 Ohm and less sensitive AKG or a higher Ohm Beyerdynamic or Sennheiser. I like my dad's Grado SR60 (that I bought for him as a gift), and you definitely will hear a difference with virtual surround processing so I'm not telling you that you should buy another headphone, but the greater soundstage of the other headphones, particularly the AKGs, really work hand-in-hand with virtual surround.

I have learned a lot and thank you. One point of confusion..... the Direct TV genie client has an Coax Digital Out. Thru the menu system, you can set Dolby Digital On or Off. There is no choice for Bitstream or any other combo.

Think of Dolby and DTS as a language, like French and Japanese. Not many devices speak DTS. Dolby digital probably should be set to on, the Recon3D only works with regular stereo and Dolby Digital Live input from toslink optical. You may have to find an adapter for coax.

Its interesting. I have listened to the clips at the beginning of this thread and Mad Lust's demos too. CMS 3D vs. Dolby Heapdhone vs. THX Tru Studio vs. Razer off Mad Lust's (2nd clip down):

At first I liked Tru Studio. But then I closed my eyes and I thought that Dolby Headphone sounded the best (Xonar DX, DH2, Cinema, 8 channel 5.1 in Windows). With the scene where the guy is getting the shoe shine and you pan in a 360 motion. But then when I listen to the Dolby Headphone examples with the guns firing (2nd clip in this thread, below Ace Venture), I am hearing a hole in the back.. I hear back right and left but not directly in back of me. DTS Headphone X sounds pretty good. You hear positional points very well which is the intent of the test tones.

Could it be the implementation of Dolby headphone being used that is confusing me? Either because its a different version of the hardware being used or the way they wrote the software in the game?

Setup is a little different for a Recon3D USB because you use USB for chat audio, but you just simply follow the same directions for PS3 that came with it and you're set. You don't even need extra adapters, everything you need comes with the Recon3D USB.

Ps4 is a source and has very little influence on the "sound," other than it is capable of supplying less compressed audio from BluRay (and the associated high-def decoding), the rest is up to the DAC and amp used. I like the Recon3D USB best, though you have to set the PS4 to bitstream Dolby. That's just "One Manns' Opinion" though.

Evshrug, can the Recon3D be powered without using the USB? I thinking about using this but I won't always have a USB to plug it into. I don;t do any gaming right now. Its all for watching movies from DirectTv. I am going to use it in multiple rooms.

Also, can you use any USB to power it? For example, my DirectTV receiver has a USB on the back. So do some of the TV's I have.

Evshrug, can the Recon3D be powered without using the USB? I thinking about using this but I won't always have a USB to plug it into. I don;t do any gaming right now. Its all for watching movies from DirectTv. I am going to use it in multiple rooms.

Also, can you use any USB to power it? For example, my DirectTV receiver has a USB on the back. So do some of the TV's I have.

It requires the USB for power. As long as the DirecTV receiver can send power over the USB, and I don't see why it wouldn't, you can use that to power the Recon3D USB. You can also use a phone charger to get power for it from any wall socket.